Broaden Your Base With Small Cap Mutual Funds and Healthcare Funds

In my last posting we talked about broadening our Mutual Fund Base and Large Cap Funds.  Today I am going to address further broadening that mutual fund base with Small Cap and Healthcare mutual funds.

There are literally thousands of Small Cap and Healthcare funds out there to invest in.  Again I suggest staying within your family of funds whenever it is to your best advantage.  Small Cap Mutual Funds will mainly consist of smaller companies of which most you may not have heard of before.  They are not your S&P 500 type stocks like Wal-Mart, Google, Apple, Exxon, etc.

We are going to address the Small Cap Mutual Funds first.  They are a very important part that should be in your portfolio of funds.  There are many excellent choices to make within various families of funds such as Franklin, Fidelity, J.P. Morgan, T. Rowe Price, etc.   Try to stay in your family of funds for this one.  I know Franklin has many choices of Small Cap Funds.  So it is not like your are stuck with only one choice.  Personally I sold off my Franklin Small Cap Fund.  But it was due to changes I needed to do to my age, retirement, and personal need.  As you age and time goes on you will need to make changes in your portfolio too and have these discussions with your own personal financial advisor.  The Small Cap Funds will further broaden your base, which is what we want.  Sliding you into another sector of the market that you very much need to be into to keep your growing portfolio balanced and broaden the base of your portfolio.  As I stated, these will not be the big top 500 companies, but smaller and less known companies.  But this does NOT mean they are a bad choice to invest in, as they are definitely not.  One fund I had in my personal portfolio for many years was the Franklin Small Cap Value A fund. (FRVLX).  It has a good history, a good Morning Star Rating and is up 28.65% year to date.  A very viable fund to invest in if you are in the Franklin family of funds or wish to get into the Franklin family of funds.  Make sure to talk with your personal financial advisor and see if they have some good choices of some Small Cap funds within your family of funds you can invest in.  I am sure you will not be displeased as it is a necessary part of building and broadening your base with mutual funds.

Next lets talk briefly about Healthcare Mutual Funds.  Well this is a no brainer.  What will always be here?  Healthcare.  As our population continues to age and we repopulate with more and more children, and more and more people get sick and need all types of medical care, our healthcare system will continue to grow.  A good Healthcare Mutual Fund is never a wrong choice to put in your portfolio.  What is my personal favorite?  It has to be T. Rowe Price Health Sciences (PRHSX).  Even if you have to go outside your family of funds to get it, this is the one for you.  It is Zacks #1 rated healthcare fund and has a Morning Star rating of 5, which is the best.  PRHSX is 41.27% year to date and has a great track record.  If you are not investing to broaden your base with this healthcare mutual fund something is definitely wrong.  This is by far the best choice of any other fund, so there is no need to talk about any others.

Of course I hope this information continues to be useful in build and broadening the base of your portfolio as it continues to grow.  We will continue with broadening this base in my next posting.

Gus



Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.